BIS links bank funding imbalance to issues with Libor

06/9/2008 | Financial Times (free content)

New research from the Bank for International Settlements found that European banks have sharply increased their dependence on dollar funding, much of which is borrowed from American banks. U.S. banks, however, have raised their dollar funding through money-market funds. The imbalance between the banks' funding patterns may explain why the Libor has remained so high.

View Full Article in:

Financial Times (free content)

Published in Brief: